LOW BUTTER PRICES

Dominion, Volume 27, Issue 59, 2 December 1933, Page 7

LOW BUTTER PRICES

Cause of Slump in England WEAK TRADERS’ FEARS London, November 30. A panic among weak traders was responsible for the flood of butter sales. Tooley Street emphasises that nobody has the slightest confidence in the future, and points out that butter fell to low levels last winter when shipments were lighter. The present slightly increased demand fails to balance the heavy arrivals. Multiple stores, co-operative isations, and mass caterers, who are among the largest purchasers, are holding off in expectation of even lower prices. Importers, on the contrary, are anxious to clear stocks immediately to make room for further heavy consignments. Dealers say they are unable to raise prices, and it is up to Australia to regulate shipments. For this reason Tooley Street would be delighted if the Australian Export Board’s meeting in December was successful, The market view, however, is that the chances of Australian and New Zealand co-operation are of the slenderest in view of New Zealand’s declaration that she is unable to restrict shipments. Danish butter continues to command a heavy premium owing to the persistent North of England preference for it. MARKETING SCHEME Commonwealth Legislation (Received December 1, 11.15 p.m.). Canberra, December 1. The Minister of Commerce, the Hon. F. H. Stewart, in a second reading speech in the House of Representatives on the Butter Marketing Bill, stated that Commonwealth legislation for the control of butter and cheese marketing would not operate until the State Governments concerned took steps to protect consumers against an unreasonable increase in the local price above London parity. The effect of the Bill was to compel the export, overseas of any butter and cheese not required for home consumption.